Question 64 Chapter 4 of +2-B

Question 64 Chapter 4 of +2-B

III. Activity Ratios

Working Capital Turnover Ratio

64. (Operating Ratio) (a) From the following details calculate the operating ratio :

  
 Cost of goods sold (i.e. Cost of Revenue from Operation) 5,20,000
 Operating expenses1,80,000
 Net sales8,00,000
(b)Cost of goods sold (i.e. Cost of Revenue from Operation) 8,00,000
 Operating expenses40,000
 Sales (Revenue from Operation)10,50,000
  Sales return50,000
(c)Sales less Return 1,00,000
 Gross profit 40,000
 Administrative expenses10,000
 Selling expenses 10,000
 Income from investments5,000
 Loss on the sale of fire3,000

 

The solution of Question 64 Chapter 4 of +2-B: – 

 

     
(a) Operating Ratio=Net ProfitX100
 Net Sales
 =₹ 7,00,000X100
₹ 8,00,000
 =57.5%  
     
* Operating Cost=Cost of goods sold + Operating expenses  
 =₹ 5,20,000 – ₹ 1,80,000  
 =₹ 7,00,000  

 

(b)Operating Ratio=₹ 8,40,000X100
₹ 10,00,000
 =84%  
*Operating Cost=Cost of goods sold + Operating expenses
 =₹ 8,00,000 + ₹ 40,000
 =₹ 8,40,000
*Net Sales=Sales – Sales Return
 =₹ 10,50,000 – ₹ 50,000
 =₹ 10,00,000
   
(c)Operating Ratio=₹ 80,000X100
₹ 1,00,000
 =80%  
Cost of goods sold=Sales – Gross Profit
 =₹ 1,00,000 + ₹ 40,000
 =₹ 60,000
Operating Cost=Cost of goods sold + Administrative expenses + Selling expenses
 =₹ 60,000 + ₹ 10,000 + ₹ 10,000
 =₹ 80,000




Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 64 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

Leave a Reply

About us

About us, we are here to improve your knowledge in all financial & Business related topics and to get better carrier opportunities. The author has about 10-year Experience in tuition Business. It is very difficult to teach a large number of students with a personal touch or in a classroom. 

Animation's Resource websites

All Icons and images used on my website were downloaded from the following website please go and download free:-

close